Coping with the aftermath of violent death is tough enough without others manipulating our vulnerability and hijacking our wallets. Sadly, the Funeral Industry has tricksters.
But to be fair, just like mechanics, realtors, contractors, and others, some funeral homes and cemeterians are great, others average and some merely profit-driven.
Adds Immeareably to Our Financial Woes
Financial pressure can feel like a hazy secondary issue from our numerous other stressors, but it isn’t. Some of our decisions are irreversible. Should we sell our residence? Do we opt for cremation? Should we specify we want a private funeral service and burial?
And the money. Oh, it’s painful. Immediate costs are, of course, burial decisions. Traditional funerals with a service can run between $7,000 – $15,000 or more. It depends on the options selected and the geographic area. Short-term costs could add to that, such as travel, hotel, meals and extra childcare. If we opt to move a family of three about 100 miles, it can cost $6,000 if we pack ourselves. Bottom line: over time the cost of an unplanned death can exceed $26,000 on top of ongoing regular expenses.
So, when we must make funeral decisions, it’s important to be ready. How do we prepare? Bring a friend who is more clear-headed and read on. Ignorance, stress and premature willingness to comply with their sales pitch cripples our ability to spot the tricksters. Let’s fix that, shall we?
The Funeral Rule
The funeral industry is regulated by the Federal Trade Commission (or FTC.) The FTC enforces the consumer protection law. This demands that the funeral care industry be transparent about their goods, prices, and services and separates the needed, from the optional. (It does not apply to cremations or cemeteries.) The legal rights of consumers in the death industry is in a document called The Funeral Rule.
The FTC did a series of sweeps to assess funeral home compliance with The Funeral Rule back in 2009. “Significant violations” were found in about 1/3 of businesses – an increase from 1996. Shame on them!
The Funeral Rule can be found here: https://consumer.ftc.gov/articles/ftc-funeral-rule Now, I’ll be the first to admit it isn’t glizty reading. So here is what I suggest. Run it off. Bring it with you. Skim the document. And be sure to put it on the table as the sale pitch begins.
The “GPL”
Ask for their “GPL” using the initials. (It stands for “General Price List.”) Why use the initials? It makes you sound more informed. The Funeral Rule states they must supply you with a written list of their costs. In times past these used to be part of their website, but that is fading into the shadows. As you scan their GPL list pay attention to what is essential and what is optional. Why?
The industry is admitting its profits are being reduced by the so-called “discount challenge.” Translation: consumers are becoming aware that they can purchase caskets and urns much cheaper on Amazon and Walmart. So, to make up for this loss, corporations are selling higher-profit – and often unnecessary – services. Examples would be elaborate and customized memorial services, premium embalming or protective burial vaults claiming to protect the casket from the weight of the soil. (Would we ever know?)
What Has Changed in the Last Three Decades?
A quiet, feverish trend has prompted mergers. Big businesses gobbled up the small. Traditional funeral homes in town (often family-owned) have been quietly going the way of CDs and checkers at Walmart. You’d be forgiven if you never noticed.
By intertwining funeral homes together under one corporate umbrella, these firms leverage economies. It never occurred to them to pass on savings to consumers.
Facade
When family-owned businesses are bought out, the old name may still be affixed to the building and stationery, along with the same staff. This helps the new conglomerates to profit from the hard-won reputation of “mom and pop” outfits. It also aids in obscuring who owns the place. So, customers are misled to think they’re dealing locally when they’re dealing with a corporation five states away.
Aren’t we always cautioned to read the fine print? It applies here also. The fine print giveaway at the bottom of ads or promotional materials may whisper “network” of providers, a “private equity firm,” “shared resources, LLC,” “foundation of partners” or “consolidated.” Translation: this is a corporation.
ABC News reports that the “industry is rife with price gouging and misinformation.” The industry’s profits have been declining due to a trend in consumers opting for direct cremations. So, they’re finding ways to make up the difference and keep their coffers overflowing.
Profit Margins are Burgeoning
And they’re positioning themselves for the anticipated boon in funeral services of our aging population. Not only are baby boomers approaching extinction, but so are many owners of family-run funeral homes. Some left to embrace the windfall and enjoy their golden years. Before the trend, businesses were selling from 3 – 5 times their annual revenue. Now it’s 7 – 9 times.
The new partnerships have sometimes marked up caskets as much as 500% over wholesale and given false information about embalming or “better body preservation.” Caskets aren’t intended to preserve the deceased. Some over-priced “protective features” like rubber gaskets can even be dangerous (due to the build-up of volatile vapors!).
Bigger corporations are even expanding into post-funeral services. Estate resolution and auctions are examples.
Insurance Assignment Services Agreement. To fatten the bottom line, some hustlers employ unlicensed embalmers. Others push life insurance policyholders to sign an “insurance assignment services” contract for a fee.
This contract allows the funeral home to work directly with your life insurance claims rep (“To take care of all the paperwork for you.”) From then on, they make all decisions on your behalf in so far as the policy is concerned. So, if the death industry business inflates its price, or includes unwanted services and never completes them, they can pocket the difference, and no one is the wiser. Moreover, if the defrauder violates the terms of your life insurance policy, the total claim could be voided. You’re out of pocket and even paid a fee to bring it about.
Spreading Tactics
A funeral director conference distributed pamphlets entitled “Moving Families Beyond an Inexpensive Option.” This is echoed by a recent funeral blog that recommends undertakers “use emotion-driven marketing.” A recent national conference hosted a presentation to inspire people to remain in the field despite the stress using the “humorous” phrase “Remember! People will always be dying!”
Know The Funeral Rule. Download, read, and understand The Funeral Rule. If you’re too overwhelmed, ask a friend (or two) to help. And by all means, bring it with you to the funeral home! Hopefully, they will see you have it in your possession.
Ask for the “GPL.” Understand was is essential from what is more symbolic.
Read the Ad’s Fine Print. Who owns the place? Is it part of a “network,” “private equity firm,” “shared resource,” “foundation of partners” “affiliate,” or “consolidated group?” Sometimes it’s listed under “terms and conditions.” Pause. Think. Ask. If you want to deal locally – are you?
Bring a Friend. When you walk into a funeral home have someone more emotionally removed from the death with you. They can cushion you from the hard sell. Have them understand The Funeral Rule. Encourage them to ask questions. You need not decide what you want at that moment. Always speak to your friend in private before deciding or signing anything.
Buy Online. Rent a Casket. Did you know Walmart, Amazon, Costco, and other retailers sell cheaper caskets that are just as useful as the “showroom models” (often with a five-day delivery turnaround from free to $50.00)? An average online casket runs $1,200 (versus $2,500 or more on-site).
Another option is to rent a casket with a removable interior. The body of the deceased never touches the rented casket itself which acts more like a frame. The liner (usually wood) is removed afterward for burial or cremation. Not all facilities offer this option. So, ask.
The same goes for cremation urns. Buy offsite. Cost depends on size, material, and type of lid. This is an expense that can be postponed until you feel clearer.
(Be aware that flying commercially with human ashes requires the contents of the urn to be viewable through an x-ray at airport security. Amazon sells TSA-compliant containers for about $30 and permanent ones from $50 – $400.)
Think Twice About Passing the Buck. Signing an “insurance assignment services” contract has risks. Think it through. If you’re just too overwhelmed, consider asking your attorney to help you deal with the policy.
What’s In Your Wallet? To try and gauge the thickness of your bank account and steer you toward pricey services and goods, the profit-driven business owner will slyly and prematurely ask “And where might you live?” Be vague. “Not far.” “Within driving distance.” “Well, not in Santa Monica where I’d love to be!” “Next to some fine neighbors.” Or just ignore their inquiry. It’s inappropriate. At that point, it’s none of their business. They’re just trying to guess your home value.
Have your Friend Drive. Don’t think the profit-driven business doesn’t notice what kind of vehicle you arrive in. Just like car salespersons, they’re trying to gauge your net worth.
Record It / Write it. Have funeral home employees put their claims and prices in writing and/or let them know they’re being recorded (“for future reference.”) The B.S. will likely come to a standstill.
Consider Direct Cremation. Any funeral business can handle a cremation if you don’t wish to contact the crematorium directly. But it will cost you. Usually, the staff at the crematory can handle all aspects of the cremation including the death certificate and transporting the body to the crematory for a nominal fee. The usual cost is around $1,100. (Cemetery space for cremated remains is extra, of course.)
Memorial Services. With cremation you can arrange a memorial service later when you have your wits about you and when it’s convenient for everyone. It may even be necessary to postpone it if the medical examiner delays the release of the body while the investigation is ongoing. Services can be held in any suitable location – even outdoors. But by no means are you obligated to have a service ever if you don’t want to.
Obituaries. Many people think obituaries published in a newspaper are legally required. No. They’re entirely optional. And they work against you if you want the service to be more private.
Costs of death notices vary considerably depending upon where it’s published, the length of the announcement, if a photo is included, and days in print. Smaller towns may charge nothing. In major cities, an elaborate obituary running for a few days may cost as much as $2,000.
The New York Times will publish four lines of text, without a photo, for one day for $263.
Be aware of scammers who impersonate funeral home staff by skimming obituaries online or in the paper. They’ll call with an urgent and unbeatable offer. Don’t fall for it. Always contact the funeral home or crematorium directly. Think before you sign anything.
Another hazard of obituaries which contain details about the service date/time is that they broadcast when you aren’t home. You might as well leave your front door open. At a minimum, have a neighbor keep a lookout during the funeral service and an extra car parked in your driveway while away. Why not leave the t.v. on also?
Embalming. Embalming is not required by law anywhere in the U.S. if the body is to be cremated or buried within 48 hours of death. Currently, the nationwide average cost of embalming is $700 but can reach $1200 if you select unnecessary “premium” services.
Green Funerals. This trend started small but is growing. Embalming, vaults, and metal coffins are eliminated. The aim is not only to lower costs but to be more environmentally friendly. It’s legal in every state. It is a down-to-earth option for consumers who want to benefit the planet.
But some large corporations are taking note. Again, know who you are dealing with.
With green funerals, the deceased is sometimes placed under a simple cotton shroud before being lowered into the ground. Many families opt for a natural woven willow casket for burial in a nonprofit conservation park (like Moles Farewell Tributes in Ferndale Washington). Formal services are optional. One drawback is that a grave marker may be limited to a small plaque or restricted altogether.
Home burials are allowed everywhere but Arkansas, California, Indiana, Louisiana, Washington State, and Washington D.C. This may impact the value of the property at the time of resale, so think it through.
For more information contact https://www.greenburialcouncil.org/
Shop around and compare. This is a no-brainer. We compare-shop for lawnmowers and plumbers. Why not for caskets, urns, funerals, and cemetery plots? Sadly only 1 in 5 families do. If a business doesn’t put their prices on the internet either email them and ask for their price sheet or go in person to pick one up. Do this before disclosing any personal financial information. Get their answer in writing or walk out.
A pending 2023 court order would require funeral businesses to post price lists online and name third-party providers. Let’s wait and see and hope it becomes law.
The Main Takeaway
Be informed. Know your options. Resist pressure. Voice your preferences. Bring a friend. We are not just customers with money to burn. We are grievers paying our last respects following one of the most harrowing experiences we will ever face – the murder of a loved one.
For more information see https://fortune.com/2022/09/22/death-care-funeral-home-industry-private-equity/
For information on obtaining a private funeral service click here: https://jancantyphd.com/you-have-the-right-to-a-private-funeral-service/
For more information on money matters following a homicide click on this blog entry: https://jancantyphd.com/the-financial-fallout-after-murder/
